The Michigan Senate should summarily vote down “Michigan Health Care Rebate Law.” The law, already passed by the house, is a misleading tax on physicians. The “Michigan Health Care Rebate Law” raises two very substantial issues. First, it represents another tax on the middle class. Second, the tax is a result of Michigan’s efforts to comply with conditions placed on receiving federal money.

As to the first issue, the “Michigan Health Care Rebate Law” places a 3% gross revenue tax on physicians. The tax revenues are then used to increase Medicaid reimbursement. Presumably, physicians who deal primarily with Medicaid reimbursement may actually support the increased rates of reimbursement, even with the 3% gross revenue tax. However, the local family practice that sees mainly middle class patients will not realize any of the increased rates of reimbursement. This, logically, will only result in increased rates or layoffs of support staff. Once again, entitlements are funded at the expense of people who pay their bills.

The second issue is larger and potentially more troublesome. With Michigan’s daunting budgetary problems, federal money is tempting, but we make a substantial compromise when in order to alleviate our budget issues we sacrifice our capacity for self-determination. Federal money for Medicaid reimbursement is nice, but is it worth a 3% tax on revenue generated by physician services? Michigan must solve Michigan’s problems. Federal money is fleeting, but our problems are not.

With these glaring issues, the Republican-controlled Senate will undoubtedly oppose the bill. The Michigan State Medical Society is also holding a “White Coat March” to express its disapproval. Going forward, these are exactly the type of proposals that Republicans can use to garner support from the already-pinched middle class.